Many people ask me this question. Well right now,it is busy! For the past 3 months, I have either had a new listing or a closing EVERY WEEK. Clients are finding the deals, but also realize that many people who were on the sidelines are now beginning to buy.
I notice the most movement in the conforming arena. For those of you who may not know, there are two types of loan, conforming and non-conforming (or jumbo). The difference is AMOUNT OF LOAN not purchase price. For example, if you want to purchase a 1.5 million dollar home, but put 50% down, you will have a loan amount within the conforming limits. There are several reasons why this area is exploding:
1) Primary Residences — This is price point is often primary residences (which people tend to buy even in economies in which luxury items are not often purchased);
2) Lower Downpayment– the amount you need for a downpayment is lower. At this level, FHA loans are available, depending on the property, and only require 3.5 % down. Obviously, more people are able to afford 3.5% down than the 30+% required for jumbo loans.
3) cash investors – For my entry level buyers looking at REOs (or foreclosures), we are often competing with all cash investors who are looking for rentals. This competition does not exist in the higher end market. In fact, we are starting to see properties that CASH FLOW, depneding on the rental value. THIS IS AN AMAZING TIME!!
If you have any questions about the real estate market and wonder if it is the right time for you to take advantage of the opportunities out there, please CALL me at (949) 554-5477.
You can always log onto my website at www.SoCalJasmine.com
